Hi Guys,
I am very new to this forum but can somebody please help with some advice.
I Sold my property 3 years ago using someone to organise the vendor finance for me for a fee. The whole idea was that the tenants would purchase the property from me within 3 years once property prices increased which it has. Now I have contacted the tenants on several occasions and even paid them a visit to see whether they were ready to refinance but they seem to be comfortable in paying current higher rate. I made the mistake of not putting a clause in the contract for a completion date.
I have spoken to solicitor and all they suggest I do is write to them to state how much they would save by refinancing. My problem is, if they dont care about savings and just keep paying then I am stuck not being able to sell this property to them which ties up my cash.
Is there anything else I can legally do to make them buy or move out??
Any help is appreciated.
what sort of agreement do you have? An installment contract maybe? This may mean that they have up to 30 years to settle – but it will all depend on the agreement. I suggest you dig out the agreement and see what it says.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Yep installment agreement and they do have up to 30 years. I really didnt think they would stick around for so long but they have and dont seem like they want to go anywhere soon. Really want to legally put pressure on them.
Thoughts?
Well, there is not much you can do, unless they have broken the agreement in some way.
I would try what the lawyer suggested. Try pointing out how much they will save, and maybe offer to help then find a broker etc. Maybe also point out how much equity is in the place and how they could possibly access that by going to a bank.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi livin23
We write our Instalment Contracts over 30 years but encourage our buyers to refinance by increasing their interest rate in years 3, 4, 5 & 6. It's explained quite clearly, right from the beginning that this is a "stepping stone" into the traditional home loan system. Of course, if they choose not to refinance, despite the increasing interest rates, we don't really care because the property starts cash flowing particularly well.
However if your current Instalment Contract doesn't have this facility (look in the Schedule of Items, in the Instalment Payment Schedule), then we've seen a discount off the price of the house and payment of all their refinancing costs work wonders. It's likely that you have a reasonable backend profit to come so, if you want this refinance to happen you need to make it attractive. As Terry says, if they've been paying as they should, it's likely your lawyer can't apply any legal pressure.
A friend of ours calls it his "chat and a cheque" technique
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Thanks for your help Paul and Terry. Will keep trying to get them to refi. Preferably without discounting the purchase price!. Will let you know how I go!
Cheers
Lee
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